Greenlight Re slipped to a second-quarter loss as catastrophe claims and weaker investment performance outweighed gains in premium income.
The Cayman Islands-based reinsurer reported a net loss of US$29.6 million, or $0.89 per diluted ordinary share, for the three months ended 30 June.
That compared with net income of $0.3m, or $0.01 per diluted ordinary share, in the same period last year.
Gross premiums written increased 2% to $183.1m, while net premiums earned rose by $0.2m to $161.8m.
The company posted a net underwriting loss of $0.2m, compared with underwriting income of $8.1m a year earlier. Its combined ratio rose to 100.1% from 95%, driven by catastrophe losses.
Investment results also weakened during the quarter. Greenlight Re reported a total investment loss of $23.8m, compared with a loss of $7.8m in the second quarter of 2025.
The company repurchased $14.2m of ordinary shares during the quarter at an average price of $17.69 per share. Fully diluted book value per share declined 3.7% to $20.61 from $21.40 at 31 March.
For the first six months of 2026, gross premiums written fell 4% to $411.1m and net premiums earned also declined 4% to $316m.
Despite lower premium volumes, net underwriting income increased to $6m from $0.3m in the first half of 2025. The combined ratio improved to 98.1%, compared with 99.9% a year earlier.
Net income for the six-month period totalled $6.2m, or $0.18 per diluted ordinary share, down from $30m, or $0.87 per diluted ordinary share, in the same period last year.
Total investment income also fell to $16.6m from $32.7m.
Greenlight Re repurchased $19.2m of ordinary shares during the first half of the year at an average price of $17.42 per share.
Between 1 July and 3 August, it bought back a further $3.9m of shares at an average price of $16.42 per share.
Chief executive officer Greg Richardson said in a press release on 4 August that the company had strengthened reserves for its Middle East exposure during the quarter while continuing to manage capital as market conditions softened.
“Volatility is inherent in our business, and this quarter is a good reminder of the important role we play in helping our clients when they need us most,” he said.
“We have taken a prudent approach to our Middle East exposure and have set up appropriate reserves this quarter.”
Chair David Einhorn said investment performance was affected by broader market conditions.
“The second quarter was a challenging investment period. Gains from our long portfolio offset losses in our short portfolio, and we had drag from macro, which detracted about 5%,” he said.
“Solasglas remains conservatively positioned during this uncertain environment, while the overall equity market remains very expensive.”
